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It says the main reason behind the problem, which affects 8% of children, is parents dropping out of work.
Many people leave their jobs because they cannot afford child care, creating a vicious circle for their already poor families the report says.
Poverty is especially acute among immigrants, it adds, as one in four poor children have non-EU parents.
The report's authors say the figure highlights the integration problems faced by immigrant families.
The report was prepared by the Council of Jobs, Income and Social Cohesion, which was set up in 2000 by the French Government.
It is headed by former European Commissioner Jacques Delors.
According to their study - which covers the under-18s - poor children are also more likely to come from single-parent households or those with four or more children.
The council says current levels of child care are not enough.
It recommends a new public child care system, provided locally like those in the Scandinavian countries.
- reprinted from BBC news